Buyer urgency could be fading as luxury homes on the South Coast NSW are passed in at auction

A holiday home in Mossy Point, known as Pete's Jetty, was expected to break suburb records when it went to auction on April 3 with a price guide of $4 million-plus.

But, despite a number of genuine enquiries on the waterfront house, the property was passed in on auction day with a $3.8 million vendor bid. It's now listed for sale by negotiation.

Meanwhile, a five-bedroom, waterfront house at Hyams Beach, NSW was due to go to auction on the same weekend and initially had price expectations between $8.5 million and $9 million.

After it failed to sell at auction, a revised price guide was added to the listing and it now appears to have been taken off the market.

Formerly owned by a member of rock band INXS, the property had been entirely renovated around 2018 and was used as a holiday rental with a price tag of $1600 per night at the peak rate.

Back down south, a 3.2-acre property in North Batemans Bay is still on the market after it was listed in October 2021 with an asking price of $2.5 million to $2.75 million.

The four-bedroom home now has a guide of $2.4 million to $2.6 million.

According to property data firm CoreLogic, homes in Mossy Point are on the market for a median of 39 days before they sell. In North Batemans Bay, the median is 29 days.

Both are located in the Capital Region, where the median days on market was 42 days for the three months to March 2022. It's a slight decrease from the year prior, when the median days on market was 55.

The median days on market is 147 days in Hyams Beach, where transactions are few and far between. The suburb is home to less than 300 residential properties.

Properties in the Southern Highlands and Shoalhaven region, where Hyams Beach is located, have a median days on market of 42 days, up from 34 days the year prior.

Longer time on market, as seen in the Southern Highlands and Shoalhaven region, is one of many signs the property market is approaching its peak, according to CoreLogic research director Tim Lawless.

In CoreLogic's March property pulse report, he said weakening auction clearance rates and larger levels of discounting are also important factors to watch.

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Anecdotally, Melissa Williams of Ray White Broulee said buyer FOMO is fading at the premium end of the South Coast market.

Ms Williams, who is selling the Mossy Point property, said while there is no doubt the right buyer will come along, prospective purchasers are taking their time.

"I think people are just stopping and thinking about, do they want to spend this kind of money, especially if it's a holiday home," she said.

"For anybody buying, [a property] still has to be perceived as really good value for money."

Ms Williams said family homes, particularly those in school catchments, are continuing to sell quickly in Broulee and Mossy Point.

"A lot of people have decided this is a really good and healthy lifestyle choice, so the people who've got that mindset will continue to try and purchase down here," she said.

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